PwC report says universities should train for skilled jobs

Universities should focus on the recovery by diversifying revenue and offering courses in skilled employment areas, says new report.

Universities should maintain their international focus says a new report from PwC,

Australia’s universities need to diversify their revenue streams, spruik courses in medical and financial technology and push for the speedy return of international students to lead their recovery from the COVID pandemic, a new report says.

The report, Where next for tertiary education? from consulting firm PwC, said the nation’s tertiary educators have the potential to take a “leading” role in the national recovery out of the pandemic and models two scenarios for the sector.

The first scenario, labelled “Enterprise Australia”, predicts an increase of $500m in revenue by 2025, versus the “Fortress Australia” model which forecasts a decline of $1.7bn.

PwC partner Chris Matthews said the key “drivers” of the economic difference between the two scenarios were the return of international students and increased private sector investment in research.

Under the “Enterprise Australia” scenario, the government would allow international students to return to Australia (with quarantine arrangements) and there would be a “shift in course focus” to industry needs like developing medical and financial technology.

The alternative scenario would see universities adopt a “domestic focus” and maintain strong border restrictions.

The report said it would be characterised by “insular decision making” and high levels of government intervention in the sector.

According to the report, there are “major growth opportunities” for universities in subject areas like health and wellbeing and agriculture.

Mr Matthews also said the education sector should support Australians to re-skill, and the “nature of education in demand may shift”.

“It might be less undergrad … but more shorter, stackable, micro credentials like a three or six-month course,” he said.

Another consulting firm report, Pathways to Recovery from KPMG, urges the federal government to use its special arrangements allowing Hong Kong students to remain in Australia as a model to attract more highly skilled international students to boost the recovery.

Even assuming no COVID-19 vaccine is found, the report estimated with an extra 40,000 young, skilled people staying permanently in Australia “GDP in 2029-30 and thereafter would be improved by $4.7bn and household disposable income by $3.2bn on an ongoing basis”.

The tertiary sector is reeling from the coronavirus pandemic and faces the loss of $4bn and the shedding of 21,000 jobs.

The Northern Territory and South Australia are set to welcome back international students, with plans to charter a flight of about 100 students who will arrive in Darwin and spend two weeks in quarantine. SA plans to bring in 300.

Additional reporting: Tim Dodd